Holiday Timing Dings Weis’ Q2 Sales

The timing of two key holidays made a dent in sales at Weis Markets Inc. during the second quarter of its fiscal 2018, which ended June 30. 

The grocer posted Q2 sales of $871.1 million, versus $876.6 million for the year-ago period. The grocer’s Q2 net income rose 3.4 percent to $19.1 million, compared with $18.5 million, last year, while Q2 earnings per share edged up 2 cents to 71 cents per share.

The company’s Q2 sales were negatively affected by the Easter holiday shift, since the 2018 Easter sales week fell on the final week of Q1, while the slow-selling post-holiday week occurred in Q2 this year. Last year, both Easter and the post-holiday week fell in Weis Markets’ Q2. Total sales for the 13-week period ended June 30 declined 0.6 percent, while adjusted comparable-store sales dipped 0.3 percent.

Sales were also adversely impacted by the timing of the July 4 holiday, which occurred later in the week, following the end of Q2. Weis Markets estimated that the incremental sales impact of the holiday shifts was about $12.5 million, as reflected in the grocer’s adjusted Q2 comps.

For the 26-week period ending June 30, the grocer’s sales edged up 1.1 percent to $1.7 billion, versus the same period in 2017, while comps increased 0.7 percent. Year-to-date income grew 16.4 percent to $35.3 million, and earnings per share for the same period rose 18 cents to $1.31 per share.

Sunbury, Pa.-based Weis Markets operates 206 stores in Pennsylvania, Maryland, Delaware, New Jersey, New York, West Virginia and Virginia. The grocer was No. 27 in Progressive Grocer's 2018 Super 50 list of the top grocers in the United States.